A major criticism of foreign aid to developing nations is that it can foster corruption and result in the improper use of funds, hindering the intended development outcomes. The correct answer is C. Encourages corruption and misuse of funds.
A significant critique of foreign aid to developing nations is its susceptibility to corruption and mismanagement. Critics argue that funds intended for economic development and poverty alleviation may be diverted or misused, exacerbating social issues rather than addressing them. The lack of transparency, accountability, and effective governance in recipient countries contributes to this concern.
Critics highlight instances where aid has been embezzled or used for purposes contrary to the original objectives. Addressing these challenges requires careful monitoring, increased accountability measures, and collaboration between donors and recipient nations to ensure that foreign aid fulfills its intended purpose of fostering sustainable development and improving the well-being of the populations it aims to support.
Option C is the correct answer.
The complete question is:
A major criticism of foreign aid to developing nations is that it
Multiple Choice
A. is capital saving rather than capital intensive
B. provides incentives for a brain
C. encourages corruption and misuse of funds.
D. gives too much power and control to the International Monetary Fund.